Budget goodies for homeowners and 1st-time buyers

*** The author of this blog, Ben Officer, is a licensed REALTOR® in the province of Alberta. The opinions expressed within this blog are those of the author and are simply that, opinions. The views expressed in this blog are not intended to advise you, as your needs may differ depending on your particular situation. The information provided in this blog is not guaranteed to be accurate and is subject to change at any time. For legal advice/information, please consult a lawyer. For mortgage advice/information, please contact a licensed Mortgage Associate. For tax advice/information, please consult an accountant. For investment advice/information, please contact a financial advisor. *** Blog Disclaimer - The information contained within this blog and posted by the author is believed to be true but cannot be guaranteed to be so. The author of this blog takes absolutely no responsibility for the comments posted by third parties on this blog.

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Wednesday, January 28, 2009

Budget goodies for homeowners and 1st-time buyers

by Ben Officer on Wed, Jan, 28, 2009 01:35 PM

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These are a few of the highlights from the proposed federal budget that will interest people who

own a home or are looking to own a home.

1. Home Renovation Tax Credit (HRTC)

- Individuals will be able to claim a 15% non-refundable tax credit for eligible expenditures made in respect of eligible dwellings. The credit will apply to expenditures in excess of $1,000, but not more than $10,000 resulting in a maximum credit of $1,350 ($9,000 x 15%).

Eligibility: This credit will only apply to the 2009 taxation year. Expenditures for work performed, or goods acquired, after January 27, 2009 and before February 1, 2010, will be eligible for the credit. Individuals will not be entitled to this credit in respect of expenditures for work performed or goods acquired in that period if the expenditure is made pursuant to an agreement entered into before January 28, 2009. Individuals may claim this credit in their 2009 income tax returns. Eligibility for the HRTC is family-based. A family will be considered an individual , and where applicable, the individual’s spouse or common-law partner, and their children (under 18 years of age throughout 2009).

2. Home Buyer’s Plan (HBP)

- Allows first-time home buyers to withdraw amounts from a Registered Retirement Savings Plan (RRSP) to purchase or build a home without having to pay tax on the withdrawal. Budget 2009 proposes to increase the HBP withdrawal limit to $25,000 from $20,000.

3. First-Time Home Buyers’ Tax Credit

- Budget 2009 introduces a new non-refundable tax credit based on an amount of $5,000 for first-time home buyers who acquire a qualifying home after January 27, 2009. The credit for a taxation year will be calculated by reference to the lowest personal income tax rate for the year and is claimable for the taxation year in which the home is acquired.

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Edmonton, St Albert, & Area RE/MAX Real Estate Professional

Ben Officer, CD REALTOR®

Budget goodies for homeowners and 1st-time buyers

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